- Tile Shop overstated its earnings in 2013 by more than 200 percent.
- Beijing Pingxiu (BP), the company’s largest supplier, was related to Tile Shop, in that BP is secretly controlled by the brother-in-law of Tile Shop’s CEO.
- Tile Shop used BP to exaggerate its inventory and profits, purchasing goods at or near cost.
Persons with non-public information should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.About Hagens Berman Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities, including the San Francisco Bay Area where this lawsuit has been filed. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The Firm’s Securities Newsletter is at http://www.hb-securities.com/newsletter.